real estate alert 10.28.09 (downloadable)
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8/14/2019 Real Estate Alert 10.28.09 (downloadable)
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Managing director David Lucey is leav-ing Fidelity Investments at yearend.Lucey is legal counsel and head of theasset-management team for the Boston-based real estate group. He joinedFidelity five years ago. Managing direc-tor Jeff Tapley, a 15-year Fidelity veteranwho has primarily worked on acquisi-tions, will assume Luceys duties.
Barry Berkowitz has joined NewmarkKnight Frank Capital as a managingdirector in New York. He will assistbuyers and sellers of loans and proper-ties, including distressed real estate.Berkowitz previously worked at NewYork advisory firm Carlton Group andbrokerage Eastern Consolidated. He hasalso invested via his own company,Beta 2.
CB Richard Ellis is looking for a brokerto head up its multi-family investment
THE GRAPEVINE
Placement Agents Shift to Advisory FocusWith few funds in a capital-raising mode, placement agents have shifted their
focus to advising fund operators and their limited partners on how to navigate thetroubled real estate market.
Industry pros said 2009 will be remembered as the toughest year in recentmemory for placement agents, with the bear market forcing the downsizing ofoperations. The survivors are being asked to defend their industrys past practicesto the SEC, even as they struggle to keep their businesses afloat.
The people who remain are the ones who have been able to transition the busi-ness to advisory services in a much tougher environment, said one market veter-an (see list of placement agents on Pages 9-10).
With their main line of business soliciting capital for new funds largely
dead for now, placement agents are assisting fund operators on interactions withSee PLACEMENT on Page 8
CenterPoint Targets Industrial Plays in Calif.A year after opening its first West Coast office, industrial investor CenterPoint
Properties is looking to make a big splash in the region.The Oak Brook, Ill., firm is viewed as a leading contender to buy a 2.5 million-
square-foot portfolio of California distribution properties being offered byPanattoni Development among the largest industrial offerings this year.
CB Richard Ellis, which is advising Sacramento-based Panattoni, is expected topick a winner this week. The fully occupied properties, in Ontario and RanchoCucamonga, could trade for as much as $135 million. That would translate into an
initial capitalization rate between 8% and 8.5%.Regardless of the auctions outcome, CenterPoint is poised to be a dominant
buyer of similar properties in Southern California. It could acquire $1 billion ofproperties within 3-5 years.
The 25-year-old company was acquired in 2006 by CalEast Global Logistics, aSee CENTERPOINT on Page 7
Chadwick Takes Reins of Calif. BrokerageWilliam Chadwick, a founder of real estate investment bank Chadwick Saylor,
has been named chief executive ofMulti-Housing Capital Advisors, a Beverly Hillsapartment brokerage operation that broke away from Transwestern in January.
The surprise move lifts the profile of the operation and marks Chadwicksreturn to commercial real estate after his quiet departure from Chadwick Saylorlate last year.
Until January, the multi-family brokerage operation was affiliated withHouston-based Transwestern and operated under the name Transwestern Multi-Housing Capital Advisors, focusing on California. But the two parties agreed topart ways, leading to the formation of a new, independent company under mostlythe same management team.
The company was founded by principals Curtis Palmer, Herb Chase and AndySands. Palmer and Chase are Transwestern alumni. Sands was formerly a seniorpartner ofING Realty Partners. Several other Transwestern executives stayed on at
See CHADWICK on Page 6
9 PLACEMENT AGENTS
3 Equity Sought for FDIC-Asset Fund
3 Distressed Calif. Condo Project Sold
3 Industrial Fund Shifts to Debt Plays
4 Developer Seeks Equity for 2 Funds
4 Cornerstone Hotel Fund Posts Loss
5 Distressed Retail Plays Emerge in Ga.
6 Lender Shops Seized Hotel in NJ
7 Trident Pursues Troubled Portfolio
7 Distressed Student Housing on Block
8 Capmark Lists Foreclosed Va. Offices
11 Cigna Complex on Block Near Dallas
OCTOBER 28, 2009
See GRAPEVINE on Back Page
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8/14/2019 Real Estate Alert 10.28.09 (downloadable)
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Lender Shops Seized Hotel in NJA lender is asking $29.5 million for an underperforming
hotel near Princeton, N.J.The 364-room Wyndham Princeton Forrestal Hotel and
Conference Center, in Plainsboro, is being pitched to oppor-tunistic investors interested in changing the flag, installing newmanagement and improving operating performance. The hotelis currently running an annual deficit of about $2.6 million.
The unidentified lender is willing to provide a long-termmortgage for up to 75% of the asking price. The rate would beabout 7.25%.
Merritt Capital, an investment firm in New Canaan, Conn.,acquired the property for $35 million in 2004, when it wascalled the Merrill Lynch Hotel and Conference Center. Merrittspent some $6 million on a renovation and put the propertyunder the Wyndham flag.
Merritt refinanced the hotel a few years ago, taking out a$51 million mortgage. In December 2007, the property wasappraised at $77 million. But Merritt subsequently surren-dered the hotel to its lender. In the past few years, performancedropped off dramatically as business travel and conferencesdeclined. The hotels current 29% average occupancy rate and$144 average room rate are insufficient to cover expenses.
Wyndhams contract has expiredso a buyer could change to anotherflag, such as Hilton or CrownePlaza.
The hotel, which includes 64conference rooms encompassing47,000 square feet, is at 900
Scudders Mill Road, just off ofRoute 1. Its near PrincetonUniversity and several large corpo-rate campuses.
Hotel A.G. has the listing. Formore information, call KeithThompson at 770-692-1605.O
Chadwick... From Page 1the independent operation as well.
The company handles invest-ment sales and brokers both debt
and equity. In its biggest assignmentso far, it advised a subsidiary of SanDiego-based Fairfield Residential onthe $96 million sale of Gallery atNoHo Commons, a 438-unit apart-ment complex in Los Angeles, tohigh-yield player Behringer HarvardThe transaction closed last month.
Chadwick began his career as anattorney and served in several advi-sory posts for the federal govern-ment. He moved into commercialreal estate in 1989 when he and realestate veteran Paul Saylor openedChadwick Saylor in Los Angeles andturned it into a multi-service invest-ment bank.
Early this year, Chadwick wasnamed chairman and chief execu-tive of PriceDoc.com, an Internetstartup in Solana Beach, Calif., thatcompares the prices of medicalservices. Its unclear whether he willgive up those duties.O
October 28, 2009 6Real Estate ALERT
NORTHERNCALIFORNIA
SOUTHERNCALIFORNIA
BOSTON
NY/NJ/CT
PHILADELPHIABALTIMORE
WASHINGTON, DC
SOUTH FLORIDA
INVESTMENT CRITERIA:
HIGH-QUALITY NEIGHBORHOODAND COMMUNITY SHOPPING CENTERS
GROCERY-ANCHORED RETAILCENTERS PREFERRED
MINIMUM OF 100,000 SQUARE FEET
LOCATED IN OUR CORE MARKETS
For more information about Federal Realty and our investment
criteria, please visit www.federalrealty.com/acquisitions.
WESTERN REGION
Jeff [email protected]
MID-ATLANTIC AND
SOUTHEAST REGIONS
Barry [email protected]
NORTHEAST REGION
Contact us to benefit from our expertise and access to capital.
With more than 40 years of experience in
owning, operating and redeveloping high-
quality shopping centers, Federal Realty
understands the financial requirements and
strategic goals of retail real estate owners.
We can create custom, flexible deal structures
to meet your particular needs. Contact us
today to discover how your retail real estate can
benefit from our foundations of opportunity.
PAY DOWN MATURING DEBT
TAKE ADVANTAGE OF DISCOUNTED
PAYOFF OPPORTUNITIE S
BUY OUT PARTNERS
ACQUIRE SHOPPING CENTERS
(CASH AND TAX-DEFERRED STRUCTURES)
FEDERAL REALTY HAS CAPITAL TO:
Federal Realty Investment Trust has
over $1 billion of capitalavailable to owners of high-quality retail centers.
Visit us at Booth 321 in Americas Hall I.ICSC New York National Conference | December78